Pulling cash flow into stocks of manufacturing enterprises

Attraction through indicators

Recently, the Ho Chi Minh City Stock Exchange (HOSE) has issued a decision to build and manage two new investment indexes, VN50 Growth and VNMITECH. In which, the index of modern industrial and technology stocks, VNMITECH (Vietnam Modern Industrials & Technology Index), will include stocks that meet the screening criteria with a number of about 30 to 50 securities codes selected from the indexes of raw materials, industry and information technology.

Up to now, HOSE's index portfolio has 10 HOSE-Index and 10 industry indexes. Of which, VNFINLEAD and VNFINSELECT indexes have been operating since November 2019 and are two financial stock portfolio baskets including stocks in banking - insurance - securities. Launched at the same time, VNDIAMOND basket includes stocks with a minimum foreign investor holding ratio of 95%. Through many portfolio restructuring periods, the number of financial institutions in the index basket has often been overwhelming. Right now, there are 10 bank stocks in the portfolio of 19 stocks.

At the conference on the implementation of the task of developing the stock market two years ago, Ms. Nguyen Thi Mai Thanh, Chairwoman of the Board of Directors of Refrigeration Electrical Engineering Corporation (REECorp) pointed out the current situation that the group of manufacturing enterprises is currently much weaker than financial institutions in the index baskets. According to the "female general" of REECorp, with the main criteria of capitalization and liquidity, the index portfolio still does not fully reflect the picture of the economy , when the proportion is concentrated in a few industry groups. Especially with the group of bank stocks with large capitalization and attracting large cash flows from investors. According to Ms. Mai Thanh, this raises the need to add criteria so that enterprises from different industries placed in this basket will represent the economy.

In fact, in order to overcome the fact that key indices are too biased towards one industry group, such as the financial group, which once accounted for over 60%, HOSE applied the Index Set version 4.0 from the beginning of 2025. In particular, the most significant change is that the VN30 index basket limits the capitalization ratio of a group of stocks in the same industry to 40%, in addition to the rules limiting 10% for each stock and 15% for related groups of stocks that have been applied for a long time.

Many bright faces

The launch of the VNMITECH index opens up opportunities for businesses that qualify for the index to attract greater attention from investors, especially when ETFs or derivative products using this index as a reference basis appear. In the medium and long term, VNMITECH can help businesses in this group increase liquidity and improve valuation thanks to active and passive capital flows tracking the index.

According to experts, the VNMITECH index basket will be a gathering place for many leading enterprises in the manufacturing sector with large capitalization and high liquidity. It is estimated that, based on current data, BSC Research expects Hoa Phat (HPG) and FPT to lead the portfolio. Next are Vietjet (VJC), Gemadept (GMD), Gelex (GEX), Duc Giang Chemicals (DGC) or REE along with many other industry representatives.

Not all large enterprises immediately satisfy the criteria for inclusion. According to the rules, stocks must meet two conditions: a minimum free-float adjusted capitalization value of VND1,500 billion and a minimum matched transaction value of VND20 billion/day.

By using the free-float adjusted capitalization scale, this criterion excludes large-capitalized enterprises with low free-float ratios. The case of PetroVietnam Power Corporation (PV Power) is a typical example. The enterprise has a market capitalization of more than VND 38,750 billion. However, the fact that the Vietnam National Energy Industry Group (PVN) owns nearly 80% of the capital makes the free-float adjusted capitalization value much lower than that of other manufacturing enterprises. Recently, for the first time in nearly 7 years of listing, PV Power announced a plan to increase its charter capital, with the expected completion schedule in early February 2026. Since its successful IPO in 2018, state capital divestment has not progressed, even though the capital demand for new projects is very large.

The emergence of VNMITECH in the near future is expected to provide an additional impetus for businesses such as PV Power to accelerate the process of increasing the free transfer rate. With more bright faces meeting the standards, VNMITECH will not only better reflect the health of the industry, but also create a foundation to attract domestic and foreign capital flows in a sustainable manner towards key manufacturing sectors of the real economy.

Source: https://baodautu.vn/keo-dong-tien-ve-co-phieu-nhom-doanh-nghiep-san-xuat-d359780.html